Ghana’s Path to an Industrial–Led Growth: The Role of Decentralisation Policies

Ama P. Fenny

Abstract


Ghana’s industrial sector has evolved with the various stages of political and economic reforms since independence in 1957. Efforts to decentralize its key institutions to enhance economic growth has seen very little success especially in the area of linking industries to local institutions. Recently, the economy has been dampened by worsening macroeconomic environment, huge regional disparities and power crises. A number of policy and programme initiatives by the government have been undertaken especially in the area of revamping the local economies through the existing decentralized systems. This paper presents a critical review of the role of decentralized institutions in industrialisation in Ghana. The paper utilises annual data from the Ministry of Finance and Ghana Statistical Service from 1981 to date to show trends in growth patterns in the selected indicators.

Despite key interventions, some regions in Ghana have failed to develop. The envisioned industrial geographical dispersion has not been realised as we find many Ghanaian industries concentrated in a few regions. The paper highlights the challenges facing Ghana’s decentralized institutions and identifies the opportunities that can catalyse the growth of Ghana’s industrial sector if key policy strategic reforms are undertaken. An industrial-led growth will ensure that the manufacturing sub-sector will be boosted to improve production and provide jobs. Industrialisation has been projected at the forefront of government’s development agenda. The paper provides a review that highlights the need to support decentralised institutions to enable them stimulate investment in industrial sector.

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DOI: https://doi.org/10.5539/ijef.v9n11p22

Copyright (c) 2017 Ama P. Fenny

License URL: http://creativecommons.org/licenses/by/4.0

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)  Email: ijef@ccsenet.org

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